Portuguese government approves “Zero Fees For Innovation” decree

The Portuguese Council of Ministers has approved the “Zero Fees For Innovation” decree (Taxa Zero para Inovação) in March 2011. The government wants to reward SMEs which undertake innovation efforts by reducing administrative fees for them for a period of two years.  

The “Zero Fees for Innovation” decree aims to encourage innovation activities of SMEs, including in particular companies of young entrepreneurs, who invest in research and development under the Simplex Programme and the Initiative for Competitiveness and Employment.

The decree provides exemptions from fees and charges for those SMEs that have, in the past three financial years, i) presented research and development costs, ii) maintained or increased the number of staff and iii) increased their business volume by more than 5%. The measure also covers start-ups that invest in research and development.

SMEs that fulfil these criteria will be exempted from the payment of fees and charges for services, directly and indirectly, executed by the central government services of the State. This includes fees for:

• the commercial records of the company, for example,
• records of the appointment of a manager or an administrator of the company
• land registers of the company, for example the registry of the purchase of property
• records of the company car fleet; the registration of a mark or patent of the company
• licensing of industrial activity such as the assessment of the application for authorization of the installation of a factory;
• services of fire safety in buildings provided by the National Civil Protection;
• services of control of measuring instruments, such as scales or petrol stations, rendered by the Portuguese Institute for Quality;
• fees charged by the Office of Mobility and Land Transport involving, for example the authorisation for the carriage of dangerous goods.  

There is an annual verification whether the company meets the conditions for the exemption. It is published automatically and electronically on the company’s business registration certificate, according to the information contained in the database of Simplified Business Information (IES).

By reducing administrative burdens for innovative SMEs, the initiative aims to further promoting their growth and competitiveness. It is also meant as a special reward for those companies which, during the economic crisis, invest in R&D and keep their staff in employment.

With this initiative, the Government aims to contribute to creating an attitude of innovation and entrepreneurship in the Portuguese society. “Zero Fees For Innovation” continues and builds on earlier efforts of reducing administrative burdens and costs for SMEs and entrepreneurs which threaten to undermine job creation. In fact, it is part of a whole range of initiatives with similar objectives that have been initiated under the “Simplex Programme”. This umbrella programme has, within five years, put in practice more than 800 measures from various ministries.

References / further information:

• Simplex Programme
• Iniciativa para a Competitividade e o Emprego  
• Portuguese Government: “Taxa Zero para Inovação”